Close in profit? What does that mean? How much profit - 1 pip, 100 pips?
Simple High Profit low Drawdown Triangular Arbitrage
- #24
- Edited 11:45am Jun 17, 2017 11:32am | Edited 11:45am
- Joined Jun 2017 | Status: Trader | 156 Posts
@subheadSeven
There are 2 EA groups.
The one that says "avoid Fridays" will not open trades on Fridays.
Otherwise they are the same.
The EA that avoid Fridays will have a smaller drawdown of about 18% at worst, while the other one will get stopped out at 25% from time to time (2 time in 2 years), but trading on Fridays does produce a massive amount of extra profit.
Still not nice to see your account drop 25% at once, even though you know it will rise 100% the next 3 months.
Your heart remembers the losses more than the wins.
WOW and thanks for the tickmill link.
One thing my strategy use a lot of is a high leverage.
I only tested it on 200:1, but even with that the profit/loss is extremely small.
The high amount of trades is what brings in the profit.
A higher leverage will increase the profit by an order of magnitude.
BEWARE. My EA is hard coded to use a 200:1 leverage.
Do not use it with a lower leverage else the calculations will cause you to get stopped out or margin called.
Can use it with a higher leverage, but it will be wasted on this EA.
I will look into teaching it to detect the leverage and adapting to it.
Wow a lot of work....I need time
@SHIVA and everyone else wanting to use the EA
Read post one for limitations.
Especially that the leverage must be 200:1 or higher.
It is made for 200:1 so the best is exactly 200:1 until I can get around to teaching the EA to detect and adapt to different leverages.
There are 2 EA groups.
The one that says "avoid Fridays" will not open trades on Fridays.
Otherwise they are the same.
The EA that avoid Fridays will have a smaller drawdown of about 18% at worst, while the other one will get stopped out at 25% from time to time (2 time in 2 years), but trading on Fridays does produce a massive amount of extra profit.
Still not nice to see your account drop 25% at once, even though you know it will rise 100% the next 3 months.
Your heart remembers the losses more than the wins.
WOW and thanks for the tickmill link.
One thing my strategy use a lot of is a high leverage.
I only tested it on 200:1, but even with that the profit/loss is extremely small.
The high amount of trades is what brings in the profit.
A higher leverage will increase the profit by an order of magnitude.
BEWARE. My EA is hard coded to use a 200:1 leverage.
Do not use it with a lower leverage else the calculations will cause you to get stopped out or margin called.
Can use it with a higher leverage, but it will be wasted on this EA.
I will look into teaching it to detect the leverage and adapting to it.
Wow a lot of work....I need time
@SHIVA and everyone else wanting to use the EA
Read post one for limitations.
Especially that the leverage must be 200:1 or higher.
It is made for 200:1 so the best is exactly 200:1 until I can get around to teaching the EA to detect and adapt to different leverages.
- #26
- Jun 17, 2017 11:56am Jun 17, 2017 11:56am
- Joined Aug 2007 | Status: Doing It In Dubai | 2,457 Posts
- #27
- Jun 17, 2017 12:02pm Jun 17, 2017 12:02pm
- Joined Feb 2013 | Status: constructively provocative | 1,505 Posts
I do not have funds to test this live, but demo testing seem quite good.
mind over matter
@shiva
I just removed the leverage limitation, but keep to 200:1 until I can test it with another broker also.
Will work on the user spreads.
What is good spreads for those 3 pairs ?
I used myfxchoive's pro account.
It is an ENC commission account and the spreads are normally below those values, but I did notice their non commission account does go above them.
I would like to know some suggestions of good brokers for a poor South African like mini me.
@shiva
I just removed the leverage limitation, but keep to 200:1 until I can test it with another broker also.
Will work on the user spreads.
What is good spreads for those 3 pairs ?
I used myfxchoive's pro account.
It is an ENC commission account and the spreads are normally below those values, but I did notice their non commission account does go above them.
I would like to know some suggestions of good brokers for a poor South African like mini me.
@kosmo.
Thanks, but this strategy is not very effective below $1000 on a 200:1 leverage.
I suggest $10,000.
Might be better on a higher leverage so I will find another higher leverage broker to test it later.
Still. $10 + $40 per month for VPS. Is a lot for me.
Does not mean I will not stop pondering this strategy and EA , even if I do not have the funds to actually use it
Maybe someone could find a use for it Pay it forward
I just removed the leverage limitation, but keep to 200:1 until I can test it with another broker also.
Will work on the user spreads.
What is good spreads for those 3 pairs ?
I used myfxchoive's pro account.
It is an ENC commission account and the spreads are normally below those values, but I did notice their non commission account does go above them.
I would like to know some suggestions of good brokers for a poor South African like mini me.
@shiva
I just removed the leverage limitation, but keep to 200:1 until I can test it with another broker also.
Will work on the user spreads.
What is good spreads for those 3 pairs ?
I used myfxchoive's pro account.
It is an ENC commission account and the spreads are normally below those values, but I did notice their non commission account does go above them.
I would like to know some suggestions of good brokers for a poor South African like mini me.
@kosmo.
Thanks, but this strategy is not very effective below $1000 on a 200:1 leverage.
I suggest $10,000.
Might be better on a higher leverage so I will find another higher leverage broker to test it later.
Still. $10 + $40 per month for VPS. Is a lot for me.
Does not mean I will not stop pondering this strategy and EA , even if I do not have the funds to actually use it
Maybe someone could find a use for it
Pay it forward
@kosmo.
Thanks, but this strategy is not very effective below $1000 on a 200:1 leverage.
I suggest $10,000.
Might be better on a higher leverage so I will find another higher leverage broker to test it later.
Still. $10 + $40 per month for VPS. Is a lot for me.
Does not mean I will not stop pondering this strategy and EA , even if I do not have the funds to actually use it
Maybe someone could find a use for it Pay it forward
@kosmo and subheadseven
Even though you can use this strategy with $100 or even $10.
This will cause all lots to bottom out at 0.01 lots.
The USDJPY need to be calculated from GBPUSD and therefore if all is the same then they are not balanced and therefore the ZERO point will move a lot and become random and float.
In backtests $100 works, but in theory I deem it a bit risky.
At $10,000 you can see that USDJPY differs quite a bit from the other pairs, which is good seeing as it causes the ZERO point to be very stable and tradable, even over many months or years.
This is the main reason this strategy is so low risk, because there is a small limit to what you can lose and this limit is quite fixed, compared to normal forex trading were bottoms can always be broken.
Thanks, but this strategy is not very effective below $1000 on a 200:1 leverage.
I suggest $10,000.
Might be better on a higher leverage so I will find another higher leverage broker to test it later.
Still. $10 + $40 per month for VPS. Is a lot for me.
Does not mean I will not stop pondering this strategy and EA , even if I do not have the funds to actually use it
Maybe someone could find a use for it
Pay it forward @kosmo and subheadseven
Even though you can use this strategy with $100 or even $10.
This will cause all lots to bottom out at 0.01 lots.
The USDJPY need to be calculated from GBPUSD and therefore if all is the same then they are not balanced and therefore the ZERO point will move a lot and become random and float.
In backtests $100 works, but in theory I deem it a bit risky.
At $10,000 you can see that USDJPY differs quite a bit from the other pairs, which is good seeing as it causes the ZERO point to be very stable and tradable, even over many months or years.
This is the main reason this strategy is so low risk, because there is a small limit to what you can lose and this limit is quite fixed, compared to normal forex trading were bottoms can always be broken.
@jacktrader1
WOW you have got a 500:1 leverage. NICE
Unfortunately metatrader 4 does not have the ability to test multiple currency pairs at once.
Therefore I only backtest using metatrader 5 and then convert the MT5 exclusive coding using my hogwarts training to metatrader 4.
But I can not test it, except that I do run it using my demo account on live data, but no back tests sorry for metatrader 4.
WOW you have got a 500:1 leverage. NICE
Unfortunately metatrader 4 does not have the ability to test multiple currency pairs at once.
Therefore I only backtest using metatrader 5 and then convert the MT5 exclusive coding using my hogwarts training to metatrader 4.
But I can not test it, except that I do run it using my demo account on live data, but no back tests sorry for metatrader 4.
- #33
- Jun 17, 2017 12:23pm Jun 17, 2017 12:23pm
- | Commercial User | Joined Sep 2005 | 2,784 Posts
let me tell you, the only way to have any sort of profit or loss during a triangular arbitrage is when the lotsizes of the 3 trades are not perfectly calculated (you are more exposed on some currencies than the other), thus your profits/losses comes from the fluctuation of such currencs.
Basically you are buying and selling randomly and taking many small profits, what can ever go wrong?
Basically you are buying and selling randomly and taking many small profits, what can ever go wrong?
- #34
- Jun 17, 2017 12:24pm Jun 17, 2017 12:24pm
- Joined Feb 2013 | Status: constructively provocative | 1,505 Posts
@kosmo. Thanks, but this strategy is not very effective below $1000 on a 200:1 leverage. I suggest $10,000. Might be better on a higher leverage so I will find another higher leverage broker to test it later. Still. $10 + $40 per month for VPS. Is a lot for me. Does not mean I will not stop pondering this strategy and EA , even if I do not have the funds to actually use it
$10,000 equals $100 on a micro account, and you can easily get one with a 500:1.
for a free VPS check out amazon web services
still no good?
mind over matter
@tunera
You are correct. Or at least I also think so so I taught the EA to also thinks so.
@kosmo
Thanks kosmo.
You are right
Just do not try it using this EA as it is hardcoded for 0.01 lots.
But I would love to try it.
What broker do you suggest that is trustworthy with 500:1 and 0.001 lot size ?
That will still only take it down from $10,000 to $1000, but still a massive improvement.
I was looking at oanda some time ago, but their charge $ to use their custom API
I also do not know if oanda is trustworthy so far.
But wow they do have the lowest lot sizes.
As for the free amazon web services.
Could work, but then again they are not directly connected to forex brokers and that in itself will cause lag in trades, which leads to slippage and missed trades.
You are correct. Or at least I also think so so I taught the EA to also thinks so.
@kosmo
Thanks kosmo.
You are right
Just do not try it using this EA as it is hardcoded for 0.01 lots.
But I would love to try it.
What broker do you suggest that is trustworthy with 500:1 and 0.001 lot size ?
That will still only take it down from $10,000 to $1000, but still a massive improvement.
I was looking at oanda some time ago, but their charge $ to use their custom API
I also do not know if oanda is trustworthy so far.
But wow they do have the lowest lot sizes.
As for the free amazon web services.
Could work, but then again they are not directly connected to forex brokers and that in itself will cause lag in trades, which leads to slippage and missed trades.
- #38
- Edited 12:55pm Jun 17, 2017 12:42pm | Edited 12:55pm
- Joined Jun 2017 | Status: Trader | 156 Posts
@subheadseven
You do have a point there.
$100 will be about $1000 in one year if all goes well.
$40 x 12 for the vps=$480
Therefore I need $580 at least to do this for one year and it still need to run another 8 months to get to the $10,000 stable mark.
Therefore about $900.
The myfxchoice vps becomes free if your trade volume is enough so at $1000 you might get a big enough trade volume to get a free fast vps.
Still.
$900 = about R15,300 for me.
Which is beyond my means.
I did think about it Im a math geek you know
Still. maybe one day
You do have a point there.
$100 will be about $1000 in one year if all goes well.
$40 x 12 for the vps=$480
Therefore I need $580 at least to do this for one year and it still need to run another 8 months to get to the $10,000 stable mark.
Therefore about $900.
The myfxchoice vps becomes free if your trade volume is enough so at $1000 you might get a big enough trade volume to get a free fast vps.
Still.
$900 = about R15,300 for me.
Which is beyond my means.
I did think about it
Im a math geek you know Still. maybe one day
@subheadseven You do have a point there. $100 will be about $1000 in one year if all goes well. $40 x 12 for the vps=$480 Therefore I need $580 at least to do this for one year and it still need to run another 8 months to get to the $10,000 stable mark. Therefore about $900. The myfxchoice vps becomes free if your trade volume is enough so at $1000 you might get a big enough trade volume to get a free fast vps. Still. $900 = about R15,300 for me. Which is beyond my means. I did think about it
SVT refer to mql5 link
- #40
- Jun 17, 2017 1:17pm Jun 17, 2017 1:17pm
- Joined Feb 2013 | Status: constructively provocative | 1,505 Posts
@kosmo Thanks kosmo. You are right
0.01 on standard = $0.10 per pip;
0.01 on micro = $0.010 per pip, so you can still trade your hardcoded 0.01; it will simply be less money per pip;
hence $100 on micro equals $10,000 on standard, and hence my suggestion in the first place.
Not meaning to be rude, but I'm not interested in your EA, just lending a hand here...
mind over matter